Bitcoin's (BTC-USD) price broke the $89,000 mark for the first time on Tuesday night, showing a 10% daily growth and stabilizing at $88,600 as the Asian market opened. The crypto market capitalization grew overnight to $3 trillion, of which $1.75 trillion is Bitcoin. Since the beginning of 2024, Bitcoin has doubled in price, adding 30% in the past week alone.
Optimism Driven by Donald Trump's Win
Traders and investors are expressing optimism that Trump will loosen regulations in the cryptocurrency sector, given his ongoing support for the industry. This prospect is fueling expectations for further increases in Bitcoin's value.
Republicans, beyond the success of their presidential candidate, are also close to securing full control of Congress. Although the final results for the House of Representatives have not yet been confirmed, the Republicans are on the verge of a majority. According to analysts at Standard Chartered (OTC:SCBFF), this majority could allow the new administration to swiftly implement policies favorable to digital assets.
"We anticipate positive changes early in the administration, potentially including reforms to the Securities and Exchange Commission that could result in more relaxed regulations for digital assets," said Jeff Kendrick, director of digital asset research at Standard Chartered.
According to Pauline Shangett, the CMO of cryptocurrency exchange ChangeNOW, “Bitcoin, as one of the riskiest assets, is currently seeing heightened interest. We’re witnessing regulatory barriers being lifted, financial conditions becoming more favorable, and an optimistic macroeconomic outlook for the U.S. This trend is reflected in Ethereum as well, the second most popular cryptocurrency, which has gained nearly 20% in the past month and 52% over the past year.”
Investors Anticipate Continued Growth
On the derivatives exchange Deribit, one of the few cryptocurrency platforms offering futures trading, over $2.8 billion has been bet that Bitcoin will surpass $90,000 and set a new all-time high, CNBC reports. Bitcoin has already reached a record high of around $81,000, a clear indication that investors are confident in further gains following the U.S. election, which saw a pro-crypto candidate prevail.
“The market is heavily biased toward continued gains,” noted Vetle Lunde, head of research at K33 Research, speaking to CNBC.
Bitcoin could potentially reach $100,000 before the inauguration if Donald Trump follows through on his crypto campaign promises.